GM reported onTuesday that it had lost a record 38.7 billion dollars in 2007, mostly due to a writedown in accumulated tax credits in the third quarter that were expected to expire unused.

The buyouts would permit GM to make a further transformation of its workforce after years of painful reorganisation in the face of eroding market share, especially in North America.

The company said it was offering 140,000 dollars (S$198,370) to employees with more than 10 years of service and 70,000 (S$99,190) to others.

GM is offering early retirement pension incentives of 45,000 dollars (S$63,700) for production employees or 62,500 dollars (S$88,500) for skilled trades workers.

Eligible employees can select from a variety of ways to receive their incentive.

The plan is an expansion of an agreement with the United Auto Workers on a 'comprehensive special attrition programme'.

'We've worked with our UAW partners to ensure our employees have a variety of attractive options to consider,' said Rick Wagoner, GM chairman and chief executive. '

The special attrition programme is an important initiative that will help us transform the workforce.' -- AFP